Shares of Sun Pharmaceuticals on Tuesday surged over 6 per cent after it replaced its domestic formulations distributor, Aditya Medisales, with its own subsidiary, in the backdrop of a second whistle-blower complaint filed against the company.

On the BSE, the stock gained 6.12 per cent to Rs 422.75. Similarly, on the NSE, the stock rallied 6.32 per cent to its intra-day high of Rs 423.50. The stock closed with nearly 2 per cent gains on Monday.

Sun Pharma closed the day at Rs 418.05  , up Rs 19.70 (+4.95%) on the BSE. It was at Rs 417.40, up Rs 19.10 or up on the NSE.

“Sun Pharma’s distribution related to India’s domestic formulations business shall be transitioned from Aditya Medisales Ltd, the current distributor, to a wholly-owned subsidiary of Sun Pharma,” the company said in a regulatory filing.

Sun Pharma said this change will be made effective by the first quarter of 2019-20, post receipt of all requisite regulatory approvals.

The company also announced unwinding of a transaction amounting to Rs 2,238 crore with Atlas Global Trading and initiated steps to induct SRBC & Co LLP, its statutory auditors, as auditors of subsidiaries.

Last week, Sun Pharmaceutical asked the markets regulator SEBI to look into the issue of certain entities and individuals allegedly adopting unfair trade practices prejudicial to the company’s shareholders.

Amid reports that a second whistle-blower complaint has been filed against it and with its shares taking a beating on the exchanges, Sun Pharma had written to SEBI flagging concerns that certain entities were allegedly adopting unfair trade practices.

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